Most important numbers
We already wrote in our analysis of the announcement of the quick report that in the second quarter, Mol achieved significant growth in the most important lines compared to the same period last year and compared to the first quarter. Basically it can be said that There are opposing forces that have affected the oil company's performance in the recent period:
- Although the narrowing of the Brent-Urals spread and the reduction of refinery surcharges, as well as lower production due to refinery maintenance, have exacerbated the outcome,
- However, higher oil and gas prices and strong demand in the manufacturing sector benefited the company,
- The integration of fuel stations in Slovenia and the increase in non-fuel sales helped the consumer services business,
- Meanwhile, overall foreign exchange performance did not significantly impact the financial figures.
In general, it can be said that
Somewhat exceeding analysts' expectations, MOL closed out an exceptionally strong quarter.
The following figures were announced on the most important lines:
- EBITDA was estimated at replacement prices.: $825 million, versus analysts' expectations of $792 million (+4.1%). Of course, it depends on how you look at things: this is a significant drop compared to the results achieved in 2022, in an environment of very high energy prices, but in terms of long-term performance, it can be said that MOL closed the quarter that was much stronger than average.
- Adjusted EBITDA: $283.4 million, which is 1.2 percent higher than analysts' expectations (experts expected $280 million). Compared to last year, this is 187 percent higher, and the business branch's performance was 8.2 percent higher than the first quarter's figures.
- Adjusted EBITDAIn this line, the company caused the biggest surprise, as earnings before interest, taxes, depreciation and amortization for this segment reached $408.1 million in the quarter, compared to analysts’ expectations of $330.6 million, so the business performance was 23.4 percent higher than expectations. The new value represents a 298.1 percent increase compared to the base period, and a 39.5 percent improvement over the first quarter’s result.
Downstream was FAR MOL's most profitable business in the quarter.
- Consumer Services Adjusted EBITDA: $194.3 million, 2 percent above analysts' expectations ($190.5 million). This is 11.1 percent higher than a year ago, and the business unit's performance was 35.4 percent higher than the first quarter's figures.
- Gas sector adjusted EBITDA: $55.4 million, compared to analysts' expectations of $57.4 million (or 3.5%). The new value is 6.9% lower than the base period and 30.2% lower than the first quarter result.
Tax items (corporate tax and business tax in the first place) meant that a total of $74 million was taken from MOL. Profitability was somewhat worsened by the fact that, as in the previous quarter, the company recorded a smaller loss on foreign exchange, in this regard it was minus $32 million, as can be read from the figures. Overall, profit amounted to $456 million (+23.5% compared to expectations).
This is almost double its value a year ago (+99.1%).
The result exceeded the previous quarter by 72.1 percent.
President and CEO Zsolt Hernadi Among other things, he added the following to the quick report:
“Our company is under pressure from several directions. First and foremost, we must ensure the long-term security of supply in the region. To this end, we are working hard to ensure that all crude oil delivery routes are operational and to maximize the diversification of our crude oil supply and the flexibility of our refineries. Second, we are continuing our transformation program, relying on our own resources, as our efforts to diversify and transform oil do not have the support of society. Third, we remain committed to executing our long-term strategy to generate returns and create value for our shareholders.
It is not easy to achieve these goals, especially since the regulatory authorities and The burdens of government withdrawal limit our options even more.
This is well reflected in the fact that Mol's main Hungarian subsidiaries contributed only slightly to the Group's half-yearly financial results.
Cover image source: Fotogyár
This article does not constitute investment advice or an investment recommendation. Detailed Legal Information
